Paper Title
Cash Conversion Efficiency, Days of Working Capital Impact Onfixed Capital And Working Capital Intensive Firms

Working capital management performs a key role on companies. However, firms still ignore its importance because it involves only short term periods; management sometimes is more oriented toward long term investment financial decisions, which might seem more relevant to increase profitability. However, research about working capital impact on profitability has been developed in several industries and countries. Only few studies have been conducted on a dollarized developing economy in the twenty first century. Our research attempts to explain this relationship, examining the effect of Cash Conversion Efficiency (CCE), Debt Ratio (DR), Days of Accounts Receivables (DAR), Days of Inventory (DI), Days of Working Capital (DWC), Net Current Assets/Total Assets (NCA/TA) and Ln of Total Assets (Ln TA), on profitability measured by Return on Assets (ROA). The study employed cross-sectional methodology to analyze four hundred and sixty companies selected from Superintendence of Companies2013 database. The sample was divided in two groups according to current assets ratio: Working Capital Intensive and Fixed Capital Intensive group. The research revealed that CCE, DR, DAR, DI, DWC influenced ROA, in Working Capital Intensive group. However, Fixed Capital Intensive group analysis demonstrated that only CCE, DI and DWC had an impact on profitability. Additionally, we developed a proposition with a different combination of variables in an attempt to better explain the dependent variable in the Fixed Capital Intensive group. Keywords- cash conversion efficiency, working capital intensive, fixed capital intensive.